Markets
Bitcoin Recovery is Coming! Key Levels to Watch
Folks, it looks like we’re back on the fast track. The cryptocurrency market has seen a significant surge, rising nearly 4% in the past 24 hours to hit approximately $2.21 trillion on Tuesday. Bitcoin (BTC) led this rally, even as medium-term crypto uncertainty continues to fuel fear and pessimism. Despite a temporary recovery in BTC prices, Bitcoin’s fear and greed index has fallen to 27%.
Notably, Bitcoin’s price is up over 3% in the past 24 hours, trading around $57,222 during the early European session on Tuesday.
Where is BTC headed now?
Change in Bitcoin holdings in Germany
O German governmenta significant holder of Bitcoin over the past decade, has been selling off its Bitcoin holdings over the past 20 days. After seizing nearly 50,000 coins from movie piracy website movie2k.to, Germany now holds around 27,461 Bitcoins, valued at approximately $1.5 billion.
Using a combination of over-the-counter (OTC) options and centralized exchanges to settle its assets, Germany has significantly impacted bullish sentiment in the market. On Monday, the country made its largest on-chain move, transferring around 16,000 BTC (worth almost $1 billion).
Shortly after, Germany accumulated approximately 3,673 Bitcoins from centralized exchanges, valued at around $207 million.
Decreasing impact of Mt.Gox refunds
The negative impact of Mt.Gox Refunds in the crypto industry has gradually eased in recent days. Furthermore, many investors receiving funds from Mt.Gox are believed to be long-term holders, reducing immediate selling pressure.
FTX’s upcoming cash distribution of nearly $16 billion in Q4 is expected to increase overall cryptocurrency buying pressure, potentially mitigating the impact of any remaining Mt.Gox sales.
Market Analysis and Forecasts
Amid rising fear, uncertainty, and doubt (FUD) surrounding cryptocurrencies, Santiment noted that the chances of a market recovery are high. From a technical perspective, Bitcoin has been forming a bullish flag against the US dollar, indicating a potential rise towards $72,000 soon.
However, a consistent close below $53,000 in the coming weeks could amplify fear and trigger further capitulation in cryptocurrencies.
Read too: List of top three altcoins to avoid this season
Is the fear in the crypto market justified? Share your thoughts on the current sentiment!